IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v3y2013i2p227-242id988.html
   My bibliography  Save this article

Impact of Microfinance on Smallholder Farm Productivity in Tanzania: The Case of Iramba District

Author

Listed:
  • Frank Girabi
  • Agnes Elishadai Godfrey Mwakaje

Abstract

Over the past two decades, there has been a high promotion of microfinance institutions (MFI) in Tanzania. In 1990s there was only 825 MFI which increased to 1,875 in 2005. Currently, the country is estimated to have more than 5000 MFI. The promise of MFI lies in the belief that microfinance could empower poor people to fight against poverty through easy access to credit. But what is the actual impact of MFI on the ground? Empirical evidence in this area is inconclusive. The objective of this study was to investigate the impact of microfinance on agricultural productivity by smallholder farmers in Tanzania with the case study of Iramba District. A total of 98 respondents were selected randomly from credit beneficiaries (CB) and non-credit beneficiaries (NCB). The collected data were analyzed through descriptive statistics and multiple regression analysis. Findings revealed that, CB realized high agricultural productivity compared to the NCB respondents. This is partly because the CB were relatively better in accessing markets for agricultural commodities, use of inputs and adoption of improved farming technologies. The major factors hindering smallholder farmers’ access to credit were reported to be lack of information, inadequate credit supply, high interest rates and defaulting.

Suggested Citation

  • Frank Girabi & Agnes Elishadai Godfrey Mwakaje, 2013. "Impact of Microfinance on Smallholder Farm Productivity in Tanzania: The Case of Iramba District," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(2), pages 227-242.
  • Handle: RePEc:asi:aeafrj:v:3:y:2013:i:2:p:227-242:id:988
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/988/1471
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Md. Alamgir Hossain & Mohammad Abdul Malek & Zhengfei Yu, 2023. "Impact of Rural Credit on Household Welfare: Evidence from a Long-Term Panel in Bangladesh," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 40(02), pages 363-397, September.
    2. Adam Malla Issiou & Jacob Yabi, 2023. "Determinants of social norms and support services for the entrepreneurial spirit of rural farmers in sub-Saharan Africa: The case of Borgou in Benin [Les déterminants des normes sociales et des ser," Post-Print hal-04256003, HAL.
    3. Mwaka Kayula & Collins Otieno Odoyo & Chanda Sichinsambwe, 2022. "Effects of Crop Insurance and Finance on Small-Scale Maize Productivity in Zambia," International Business Research, Canadian Center of Science and Education, vol. 15(10), pages 1-48, October.
    4. Faraja N. Mpeku & Justin K. Urassa, 2022. "Access to Bank Loans and Smallholder Farmers' Paddy Productivity; A case of Mvomero District, Tanzania," International Journal of Science and Business, IJSAB International, vol. 15(1), pages 65-78.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:3:y:2013:i:2:p:227-242:id:988. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.